New Delhi,
Toyota and Suzuki have inked a pact for introducing electric vehicles (EVs) in India — the fifth largest car market — by 2020, almost 10 years ahead of the ambitious plan worked out by the government.

The two Japanese auto majors had inked a partnership deal in early February this year and an MoU was signed to this end.

Now, the two auto companies have concluded another MoU on considering a cooperative structure for the introduction of EVs in the Indian market in or around 2020, a joint statement said.

The Indian government has drawn ambitious plans for EVs and aims to convert the entire vehicle fleet in the country to electric by 2030.

It has also decided to tax EVs at a lower rate of 12% under GST, against a minimum 29% tax on conventional fuel cars.

Suzuki, which enjoys a 50% market share in the domestic passenger vehicle segment through its Indian subsidiary Maruti, will produce EVs for the Indian market and will supply some to Toyota, while Toyota will provide technical support.

Additionally, Toyota and Suzuki intend to conduct a comprehensive study of activities for the widespread acceptance and popular use of EVs in India. Such activities encompass the establishment of charging stations, human resources development that includes training for after-service technicians employed throughout sales networks, and systems for the appropriate treatment of end-of-life batteries, Suzuki said in a statement.

Suzuki has already announced that it will construct a lithium-ion battery plant on the grounds of its recently opened plant in Gujarat.